The Ceylon Petroleum Corporation (CPC) plans to make four tanks at the Trincomalee Oil Tank Farm operational by August this year, The Sunday Morning learns.
Speaking to The Sunday Morning, CPC Chairman Saliya Wickramasuriya said that from the 24 tanks that had been allocated to the CPC, the CPC was targeting to bring four tanks into use by August this year.
“Storage is a significant economic tool for us, both domestically and internationally. In that respect, the CPC places very high priority on the accelerated restoration and upgrade of the 24 tanks allocated to us in the Trincomalee tank farm,” he said.
He highlighted that once the four tanks became operational, it would add 40,000 cubic metres to CPC’s strategic storage network.
The Trincomalee Oil Tank Farm or the China Bay Oil Tank Farm, located in close proximity to the Trincomalee Harbour (the fourth largest natural harbour in the world), has been a point of geopolitical and economic interest since it was built during World War II by the British colonial administration.
Although it contains 99 tanks with a storage capacity of over 1.2 million tonnes, the full potential of the farm is yet to be realised. Currently, only 14 tanks are being utilised by the Lanka Indian Oil Company (LIOC) following an agreement in 2002.
Furthermore, Wickramasuriya said that following the launch of operations of the four tanks later this year, the CPC would scale up to the full 240,000 cubic metres “in the shortest possible time thereafter”.
“This programme will be executed with maximum conservation of both flora and infrastructure of historical significance. We have already sent teams of security, engineers, surveyors, videographers, and a botanical specialist to assist us in prioritising the clearing of scrub and arrest pilfering.
“Our expectation is to complete this development either with CPC’s own funds or through strategic equity partnerships, depending on the business model proposed. Towards this end, the ministry will soon call for Expressions of Interest on behalf of the CPC, encompassing both the CPC’s own 24 tanks and the tanks allocated to Trinco Petroleum Terminal Ltd. (TPTL) to test international market interest,” Wickramasuriya said.
The TPTL is a recent joint venture between CPC and LIOC, with CPC having a majority stake in the company.
Accordingly, 61 tanks were leased to the TPTL, and earlier this month the Cabinet approved the initiation of the procurement process for an investor for phase one of their development.
Reportedly, the first phase will focus on renovating nine productive tanks, laying a 1.75 km-long pipeline, and constructing essential supportive facilities.